scholarly journals Does Corruption Increase the risk Premium on the West African Economic Monetary Union (WAEMU) Bond Market?

2013 ◽  
Vol 5 (3) ◽  
pp. 129-135
Author(s):  
Mohamed Lamine MBENGUE
Keyword(s):  
Monetary Union ◽  
Risk Premium ◽  
Stock Exchange ◽  
West African ◽  
Negative Effects ◽  
Private Placement ◽  
Corruption Index ◽  
Public Offering ◽  
Spread Analysis ◽  
The Relationship

We study the relationship between corruption and risk premium in West African Economic Monetary Union (WAEMU) market bond. Our sample consists of bonds through a public offering and private placement. For this research data was collected from the stock exchange (Bourse Régionale des Valeurs Mobilières). Number of bonds, average corruption and average spread analysis was used to analyze the data. Most country in WAEMU states has a corruption index below 3.5. The results show that corruption score has negative effects on economic performance indicators and there was a predominance of private placement debt relative to debt through a public offering.

scholarly journals Development of the Risk Accumulation Method for Calculating the Capitalization Rate

2021 ◽  
pp. 7-14
Author(s):  
Nikolai Yu. Trifonov
Keyword(s):  
Risk Adjustment ◽  
Risk Premium ◽  
Stock Exchange ◽  
Country Risk ◽  
Monetary Unit ◽  
Capitalization Rate ◽  
Country Risk Premium ◽  
Risk Free Rate ◽  
The Relationship ◽  
Free Rate

Risk build-up method is the most used for calculating the capitalization rates. With the help of the literature analysis, the origin of this method is considered. The method was based on the relationship between risk and profitability of a stock in exchange trading, proven statistically. Later, when formulating the build-up method, this idea was transferred without any justification to the valuation of enterprises that do not list their securities on stock exchange. In other words, the formulas traditionally used in the application of the build-up method are empirical in nature and not precise.It is more accurate to write them down by analogy with Irwin Fisher's equation of returns. Based on the principle of dependence, one of the main ones for the valuation procedure, the essence of which is that the value of the valuation subject depends on its economic location, a set of four independent risks is given for use in the build-up method in general case: risk-free rate, country risk premium, branch risk premium, and subject risk adjustment. It is noted that the numerical value of these parameters used in the method fundamentally depends on the monetary unit used in the calculation (the valuation currency). Recommendations are given on finding a risk-free rate for various currencies, on calculating country risk premium, branch risk premium, and subject risk adjustment. The article is intended for academics, lecturers, and practitioners in such areas as corporate finance, business microeconomics, valuation, and investment analysis.

scholarly journals Study on the Relationship Between the Audit Committee of Ipo Firms and the First-Day Stock Earnings

2020 ◽  
Vol 4 (2) ◽  
pp. 21
Author(s):  
She Zhangying
Keyword(s):  
Regression Analysis ◽  
Stock Returns ◽  
Initial Public Offering ◽  
Audit Committee ◽  
Stock Exchange ◽  
Public Offering ◽  
The Relationship

This paper mainly discusses the relationship between the audit committee of IPO firms and the stock returns on the first day of trading on the stock exchange. Using the sample of 21 firms that made an initial public offering in ASX between 2008 and 2010, Regression analysis was used to conclude that the existence of the audit committee of IPO firms and listed on the first day of the stock returns have no significant direct relationships. The result shows that the audit committee has no effect on the earnings of the first day of listing, and the establishment of the audit committee may not be considered before listing.

scholarly journals Risk and Return: The Case of Securities Listed on the West African Economic and Monetary Union Regional Exchange of Securities (BRVM)

2018 ◽  
Vol 6 (1) ◽  
pp. 97
Author(s):  
Hervé Ndoume Essingone ◽  
Mouhamadou Saliou Diallo
Keyword(s):  
Emerging Markets ◽  
Monetary Union ◽  
West African ◽  
Economic And Monetary Union ◽  
Response Model ◽  
The West ◽  
Risk And Return ◽  
Empirical Results ◽  
Asymmetric Response ◽  
The Relationship

The purpose of this research is to study the relationship between risk and return on the BRVM. The empirical results, obtained using the Asymmetric Response Model (ARM) model, show the asymmetric nature of the return of the securities that are rated on them. This does not reflect the level of risk taken by investors, which is much higher than the return obtained. While this result is consistent with the distancing characteristics of risk and return observed in emerging markets, it highlights above all the need to rebalance the relationship between risk and return at the RSE in order to make it more attractive for investors.

scholarly journals Validity of Capital Assets Pricing Model (CAPM) (Empirical Evidences from Amman Stock Exchange)

2021 ◽  
Vol 8 (1) ◽  
pp. 207
Author(s):  
Ahmad Alqisie ◽  
Talal Alqurran
Keyword(s):  
Risk Premium ◽  
Stock Exchange ◽  
Conclusive Evidence ◽  
Average Risk ◽  
Pricing Model ◽  
Expected Return ◽  
Risk And Return ◽  
Amman Stock Exchange ◽  
Beta Coefficient ◽  
The Relationship

The purpose of this study is to test the validity of CAPM in Amman Stock Exchange (ASE) during the period (2010 – 2014), which was divided into three sub periods. We used monthly returns of 60 stocks of Jordanian companies listed in ASE. Black, Jensen and Scholes (1972) and Fama and MacBeth (1973) methods were used to test the CAPM in different study sub-periods. The analysis results showed that higher risk (beta) is not associated with higher levels of return, which violated the CAPM assumption. Results of the study leads to contradict the theory’s assumption that beta coefficient is a good toll to predict the relationship between risk and return; hence the beta coefficient of some portfolios in the three sub periods was not significant. In addition, the results of testing SML violated the CAPM assumption in the three sub periods that, the slope should be equal to the average risk premium. Finally, tests of nonlinearity of the relationship between return and betas validated the CAPM hypothesis, that the expected return-beta relationship is linear. Depending on the above results, we couldn’t find conclusive evidence in support of CAPM in ASE.

Family Ownership and Firm Performance

2014 ◽  
Vol 5 (4) ◽  
pp. 34-47
Author(s):  
Pradeep Dharmadasa
Keyword(s):  
Firm Performance ◽  
Sri Lanka ◽  
Ownership Structure ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Curvilinear Relationship ◽  
Family Ownership ◽  
Single Individual ◽  
Negative Effects ◽  
The Relationship

Numerous studies have focused on ownership structure and firm performance. In recent years a growing amount of research has recognized the importance of family-controlled firms (FCFs) where ownership concentrates on single individual or family. Despite many important insights, however, significant gaps in the literature remain. Studies have produced divergent findings about the performance of FCFs, leading to calls for further research. Utilizing 151 and 753 firm-years of FCFs drawn from the Colombo Stock Exchange, Sri Lanka, and the Tokyo Stock Exchange, Japan, respectively during 2011-2013, this study examines the relationship between family ownership and firm performance. Regression results show conflicting findings in that family ownership has a positive relationship with firm performance in Japan whereas a negative relationship is found in Sri Lanka. In sum, finding supports that view of the extant studies that family ownership and firm performance have a curvilinear relationship meaning that ownership concentration beyond a certain point likely creates entrenchment and consequently negative effects on performance.

scholarly journals To explore the mystery of the idiosyncratic volatility of the A-share market

2021 ◽  
Vol 235 ◽  
pp. 03025
Author(s):  
Zhuoling Ran ◽  
Xuehao Huang ◽  
Mingjia Xie
Keyword(s):  
Risk Premium ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Idiosyncratic Volatility ◽  
Cross Sectional ◽  
Monthly Data ◽  
Rolling Window ◽  
Financial Research ◽  
The Relationship ◽  
A Share

Return and risk are inevitable topics in financial research. This paper explores the relationship between IVOL (idiosyncratic volatility) and cross-sectional return (risk premium and excess return) of the Chinese A-share market. With the monthly data of 237 months from January 2001 to September 2019 of Ashare of Shanghai and Shenzhen stock exchange, IVOL of each stock by the regressions is conducted through rolling window based on the four factors model of Carhart. Whether there is a significant positive or negative relationship between the IVOL and the cross-sectional return of the stock by combination analysis and crosssection regression are tested in the paper. The research shows that, after excluding the influence of financial crisis and stock disaster, from January 2001 to September 2019, there is a significant positive relationship between the special volatility and cross-sectional return in Chinese A-share market under normal market conditions, and there is no so-called “mystery of the special volatility”.

scholarly journals Regional Stock Exchange Development and Economic Growth in the Countries of the West African Economic and Monetary Union (WAEMU)

Economies ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 181
Author(s):  
Babatounde Ifred Paterne Zonon
Keyword(s):  
Economic Growth ◽  
Monetary Union ◽  
Stock Exchange ◽  
West African ◽  
Economic And Monetary Union ◽  
The West ◽  
Distributed Lag ◽  
Distributed Lag Model ◽  
Long Run ◽  
Lag Model

This study used panel data covering 27 years to investigate the causality between regional stock exchange development and economic growth in the West African Economic and Monetary Union (WAEMU) countries. We performed a homogeneous Granger non-causality with an autoregressive distributed lag model (ARDL) and Markov-switching analysis, using six indicators for the stock and financial market and six for control. The results showed a close economic relationship between WAEMU countries and causality from the regional stock exchange, which supports the supply leading hypothesis. The causality was confirmed in the short and long run, depending on the variable. The causal relationships that support the demand-driven hypothesis were recorded from the economic growth for four market measurements.

scholarly journals Pengaruh Variabel Keuangan dan Non Keuangan terhadap Underpricing pada Perusahaan yang Melakukan Initial Public Offering (IPO) di Bursa Efek Indonesia

2020 ◽  
Vol 15 (1) ◽  
pp. 42-54
Author(s):  
Martha Rianty N ◽  
Dwi Riana
Keyword(s):  
Initial Public Offering ◽  
Capital Market ◽  
Sampling Method ◽  
Stock Exchange ◽  
Financial Leverage ◽  
Independent Variables ◽  
Financial Variables ◽  
Underwriter Reputation ◽  
Public Offering ◽  
The Relationship

Underpricing is a phenomenon in initial public offering that often occurs in the capital market and has been proven by research in many countries. This study aims to analyze financial and non-financial factors that effect underpricing. This research is done in Indonesia stock exchange specifically on those companies that are going on initial public offering in 2010-2015. Underpricing is measured using intial abnormal return which is the dependent variable of this study. Meanwhile the independent variables are financial leverage (financial variable), auditor reputation, underwriter reputation, (non-financial variables). 114 companies are selected as the sample through purposive sampling method. Logistic regression model is used to test the relationship between the variables. The results show that the reputation of underwriter and auditor are significant and positive in affecting the underpricing. Meanwhile, financial leverage are found to be insignificant in affecting the underpricing.

Kredit Bermasalah sebagai Pemoderasi Pengaruh Tingkat Penyaluran Kredit terhadap Profitabilitas

2020 ◽  
Vol 5 (1) ◽  
pp. 52
Author(s):  
Sukirno Sukirno
Keyword(s):  
Research Method ◽  
Quantitative Research ◽  
Stock Exchange ◽  
Survey Methods ◽  
Analytical Tool ◽  
Significant Positive Effect ◽  
Purposive Sampling ◽  
The Relationship ◽  
Positive Effect

Abstract This study aims to empirically challenge the moderation of Non-Performing Loans to the effect of Credit Distribution Rates on Profitability. The population of 81 bank companies listed on the Indonesia Stock Exchange in the period 2014-2018 and which met the criteria of the research sample (purposive sampling) were 22 companies. The research method uses survey methods with quantitative research approaches, the analytical tool used is moderation regression. This study concludes that the level of credit distribution has a significant positive effect on profitability and the existence of the problem loan variable is proven to be a moderating variable that weakens the relationship between the level of credit distribution and profitability.    

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